SAS observed continued positive trend for passenger demand – equity solicitation process initiated

During the second quarter of 2023, SAS Scandinavian Airlines experienced a positive trend in passenger demand, with a 36% increase in the number of passengers compared to the same period last year. The underlying demand for travel remained healthy despite economic uncertainties. SAS added 10 new routes for the summer and autumn seasons, including three direct intercontinental routes to New York from Aalborg, Gothenburg, and Copenhagen. They also resumed traffic to Tokyo in June and announced the reintroduction of a direct route from Copenhagen to Bangkok starting in autumn.

SAS initiated the equity solicitation process as part of their SAS FORWARD plan and Chapter 11 process in the US. The process aims to secure capital for the airline and facilitate its emergence from Chapter 11. SAS entered into new sale and leaseback agreements for ten new Airbus A320neo aircraft, ensuring competitive financing for their fleet. Financially, SAS reported a negative income before tax (EBT) of SEK 1.4 billion for the quarter, but this represented an improvement compared to the previous year. Jet-fuel prices and currency exchange rates posed challenges for the business. The cash balance at the end of the quarter was SEK 5.6 billion.

SAS continued to prioritise sustainability efforts during the quarter. They partnered with companies like DSV and Sundsvall Municipality to promote the use of sustainable aviation fuel. SAS launched ticket types that include biofuel, aiming to use fossil-free aviation fuel equivalent to all domestic flights by 2030. They were recognized as the most sustainable company in the aviation industry in Sweden according to the Sustainable Brand Index. SAS’ redesigned app also won a Webby Award for its features and usability.

Looking ahead, SAS expects a busy summer season with increased capacity and new routes. They aim to complete the equity solicitation process after the summer and emerge from Chapter 11 in the latter part of the second half of 2023. The company remains committed to its SAS FORWARD transformation plan and sustainable aviation initiatives.